The recently published annual \u2018Fraud and error in the benefit system\u2019 report<\/a>, which estimates how much money the Department has incorrectly paid in the 2024\/25 financial year, either through overpayments or underpayments, indicates that \u00a39.5 billion was overpaid to claimants, 3.3 per cent of the total benefits expenditure.<\/p>\n This is down from \u00a39.7bn (3.6%) in 2023\/24. The total rate of benefit<\/a> underpayments remained the same at \u00a31.2bn (0.4%).<\/p>\n READ MORE: DWP confirms stance on plans to means-test State Pension payments<\/a>READ MORE: DWP confirms cuts to Universal Credit health element will start in April<\/a><\/p>\n To qualify for DWP benefits people need to meet certain eligibility criteria and the amount of money they receive depends on their circumstances.<\/p>\n DWP explained: \u201cSometimes people tell us the wrong information or do not tell us when their circumstances change. Reporting accurate information and providing evidence may change the amount of benefit people are eligible for and in some circumstances, they may be eligible for more money.<\/p>\n \u201cHowever, we cannot calculate the correct amount unless people tell us accurately about their circumstances. This means that people are not eligible for increases in the amount of money they receive until we have the correct information.\u201d<\/p>\n DWP fraud and error review for 2025\/26 financial year<\/p>\n The DWP confirmed it will be measuring sample cases from six benefits for \u2018unfulfilled eligibility\u2019 over the current financial year.<\/p>\n These include:<\/strong><\/p>\n Definitions of Fraud, Claimant Error and Official Error<\/p>\n The DWP defines the three types of fraud and error.<\/p>\n Fraud<\/p>\n Claims where all three of the following conditions apply:<\/p>\n Claimant Error (unfulfilled eligibility)<\/p>\n An overpayment has occurred where the claimant has provided inaccurate or incomplete information, or failed to report a change in their circumstances, but there is no evidence of fraudulent intent on the claimant\u2019s part.<\/p>\n Official Error<\/p>\n The benefit has been paid incorrectly due to a failure to act, a delay or a mistaken assessment by DWP, a local authority or HM Revenue and Customs (HMRC), to which no one outside of that department has materially contributed.<\/p>\n The DWP report also highlighted that total spending on benefits increased from \u00a3266.2bn in 2023\/24 to \u00a3292.2bn last year.<\/p>\n This was an increase of \u00a326.0bn (9.8%) which was mainly due to:<\/strong><\/p>\n However, DWP said those increases are partially offset by a reduction of \u00a310.2bn (100.0%) in Cost of Living Payments expenditure.<\/p>\n DWP plans to publish the 2025\/26 findings in May next year.<\/p>\n Join the conversation on our Money Saving Scotland Facebook group<\/a> for money-saving tips, the latest State Pension and benefits news, energy bill advice and cost of living updates.<\/p>\n Sign up to our Record Money newsletter and get the top stories sent to your inbox daily from Monday to Friday with a special cost of living edition every Thursday – sign up here<\/a>.<\/p>\n You can also follow us on X<\/strong> (formerly Twitter) @Recordmoney_<\/a> for regular updates throughout the day or get money news alerts on your phone by joining our Daily Record Money WhatsApp community<\/a>.<\/p>\n\n
\n
\n
![\"\"](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/04\/0_DR-MOney.png\")
Get the latest Record Money news<\/p>\n